Logistics shares in focus; Gati surges over 10%

Patel Integrated, Sical Logistics, Transport Corporation of India and Snowman Logistics has rallied over 4% on BSE.

Shares of logistics companies are trading higher on the bourses after the Prime Minister Narendra Modi said on Tuesday that he was hopeful of rolling out the GST (goods and services tax) Bill in 2016.

Among the individual stocks, Gati has rallied 13% to Rs 143 on the BSE on back of heavy volumes. The trading volumes on the counter jumped more than three-fold with a combined 3.32 million shares changed hands till 10:56 am, on the NSE and BSE.

Patel Integrated Logistics (13% at Rs 93), Sical Logistics (10% at Rs 171), Transport Corporation of India (6% at Rs 261) and  Snowman Logistics (4% at Rs 97) have rallied more than 3% on BSE in intra-day so far.

"We have introduced the GST Bill in Parliament and hope to roll it out in 2016," Prime Minister Narendra Modi said at an event organised by Nasscom in Bengaluru on Tuesday, the Business Standard reports suggests. CLICK HERE TO READ FULL REPORT.

Mr V S Krishnan, Member, Central Board of Excise & Customs speaking at Interactive Session on Enhancing Competitiveness of Indian Business organized by Confederation of Indian Industry (CII) in last month mentioned that GST once implemented will boost the GDP growth by 1-2%. It will have a major impact on reducing logistics cost which is around 14-15% in India as compared to the world average of 7%.

GST will facilitate in removing interstate barriers boosting interstate trade in volumes and with simplification in tax procedures will increase tax revenues. GST will also bring in substantial reduction in non-compliance in the trading sector bringing the trading and manufacturing at par and increasing competitiveness, he adds.